• Bithumb switches partner bank to KB Kookmin Bank starting March 24th.
• Kookmin Bank’s stronger appeal to the 2030 generation promises increased accessibility for investors.
• The partnership could challenge Upbit’s dominance in the Korean crypto market.

Bithumb’s partnership with KB Kookmin Bank will likely reshape South Korea’s crypto market. This change, effective March 24, from Nonghyup Bank to Kookmin Bank, is a strategic move to attract younger and institutional investors. The partnership aligns with regulatory changes that encourage exchanges to improve their market appeal and operational efficiency.

In May 2024, Bithumb tried to register KB Kookmin as its partner firm with the Korea Financial Intelligence Unit (KoFIU). However, the KoFIU rejected the request due to issues with the submitted documents. The latest approval marks a significant development in South Korea’s crypto sector.

South Korea’s “one company, one bank” policy requires digital asset exchanges to use a designated bank for real-name account services. By choosing Kookmin Bank, one of the nation’s top commercial banks, Bithumb wants to gain a competitive edge. It also wants to overcome the account management issues it experienced with Nonghyup Bank.

Related: South Korea’s Bithumb Adds DEEP Token With Trading Incentives

Bithumb expects the move to broaden its customer base, attracting Millennials and Generation Z. About 60 percent of crypto exchange users fall within these age groups.

“The partnerships between exchanges and commercial lenders will strengthen, reflecting growing customer needs,” an industry insider noted.

Bithumb Partners with Kookmin Bank to Challenge Upbit

Kookmin Bank, known for its strong infrastructure and appeal to younger demographics, will simplify user onboarding and improve deposit and withdrawal processes. This strategy mirrors the success of Coinone, which saw a 120% increase in new user registrations after switching to Kakao Bank last year. For Bithumb, the partnership may also attract corporate investments, as Kookmin Bank works with institutional clients.

Market analysts believe this move could challenge Upbit, South Korea’s leading crypto exchange. With a broader branch network, user-friendly services, and a strong focus on institutional engagement, Kookmin Bank gives Bithumb a competitive edge.

By aligning with Kookmin Bank, Bithumb is signaling its intent to dominate the rapidly changing market.

Related: South Korea’s Crypto Investors Top 15M, as Trading Volumes Surge